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Total Utility and Marginal Utility | Commodity

The upcoming discussion will update you about the difference between total utility and marginal utility. Utility, in ordinary sense, means usefulness. But, in economics, it means want-satisfying power of a commodity or service — the power to satisfy a human want. Thus, a pen has utility to a teacher but not to an illiterate farmer. […]

Price Elasticity of Demand (Practical Applications) | Commodity

The following points highlight the nine main practical applications of the concept of price elasticity of demand. The uses are: 1. Effects of changes in price upon demand 2. Effects of changes in price on revenue 3. Monopoly pricing 4. Price discrimination 5. Wage bargaining by trade unions 6. Importance in taxation 7. Importance in […]

Cross Elasticity of Demand (With Formula) | Commodity

In this article we will discuss about the cross elasticity of demand, explained with the help of suitable diagram. Cross elasticity provides a convenient basis for studying the relationship between two different commodities. Cross elasticity of demand is the degree to which the quantity demanded of one commodity responds to a change in the market […]

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